Title: QUIZ: Creditors' Criteria and Borrowers' Rights and Responsibilities Module
Course: Kelly's Copy and Export Course > Section: Creditors' Criteria and Borrowers' Rights and Responsibilities (It's Your Paycheck, Lesson 7) Module

Q: Which of the following list the three C’s of Credit?
- Capital, capacity, collateral
- Capacity, collateral, character
- Character, capacity, capital
- Collateral, capital, creditworthy
A: Capacity, collateral, character
If right: That is correct.
If wrong: This is incorrect. The three C’s of Credit are capacity, collateral, and character.

Q: When bankers examine factors such as level of income, length of time on the job, and how much debt the borrower has relative to income, which of the C’s are they considering?
- Capital
- Capacity
- Character
- Collateral
A: Capacity
If right: That is correct.
If wrong: That is incorrect. Capacity includes factors that affect a borrower’s ability to repay the loan, including income, length of time on the job, and how much debt the borrower has relative to income.

Q: When bankers examine factors such as willingness to repay the debt and the borrower’s reputation for paying bills and debts based on past behavior, which of the C’s are they considering?
- Capital
- Capacity
- Character
- Collateral
A: Character
If right: That is correct.
If wrong: That is incorrect. Character includes factors such as the bill payer’s history of paying bills and debts.

Q: An asset the creditor can take if the borrower doesn’t repay the debt is called _____________.
- capital
- capacity
- character
- collateral
A: collateral
If right: That is correct.
If wrong: That is incorrect. Collateral includes assets the creditor can take if the borrower doesn’t repay the debt.

Q: Which of the following is a credit responsibility?
- Understand that if a deal sounds too good to be true, it probably is.
- Lenders must notify you within 30 days of their decision to make a loan to you or not.
- Neither the length of the loan, i.e., the term, nor the interest rate may be changed for a fixed-rate loan.
- Creditors cannot make decisions based on sex, national origin, marital status, color, race or age, nor can they ask for this information.
A: Understand that if a deal sounds too good to be true, it probably is.
If right: That is correct.
If wrong: That is incorrect. It is a credit responsibility to understand that if a deal sounds too good to be true, it probably is. The other answer options are credit rights.

Q: A ___________________is a person, financial institution, or other business that lends money.
- creditor
- borrower
- owner
- debtor
A: creditor
If right: That is correct.
If wrong: That is incorrect. A creditor is a person, financial institution, or other business that lends money.

Q: What is credit?
- The granting or lending something of value in exchange for future repayment
- The amount you earn for completing a task
- The recognition you receive during the previous pay period
- Using money from your savings account to make a purchase
A: The granting or lending something of value in exchange for future repayment
If right: That is correct.
If wrong: That is incorrect. Credit is when you grant or lend something of value in exchange for future repayment.